Link to 3rd SOAP-Jet webinar in CHASE grant series

Virent is Replacing Crude Oil.
CAAFI SOAP- Jet Webinar
March 21, 2014
© Virent 2014
Agenda

Introduction

Feedstock

Conversion Technology

Jet Fuel Quality/Testing

Questions
© Virent 2014
2
Presenters

Randy Cortright, PhD


Brice Dally


Biochemical Engineer, Renewable Resources
Distinguished Staff Engineer
Cynthia Ginestra, PhD

© Virent 2014
Director Biomass Feedstock National User Facility
David Thompson, PhD


Senior Process Development Engineer
Kevin Kenney


Chief Technology Officer and Founder
Aviation Fuels Research Engineer
3
Introduction
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4
Virent at a Glance
The global leader in catalytic biorefinery research, development, and
commercialization
Employees
Partners & Investors
75+ Employees
Technology
Converting plant-based feedstocks
to fuels and chemicals
© Virent 2014
Infrastructure
25x Development Pilot Plants
2x Process Plants
5
The BioForming® Concept
Biobased feedstocks to direct replacement products
Biomass
Drop-in
Aromatics
Processing
Reformate
(Modified ZSM-5)
Aromatics
Gasoline
Sugar Cane
APR/HDO
Drop-in
Corn
Corn
Distillate
Processing
(Condensation+ Hydrotreating)
© Virent 2014
Distillate
Jet Fuel
Diesel
6
Slide 6
BioForming® Feedstock Advantage
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APR/HDO Reaction Pathways
Option 1 : APR (In-Situ H2 Production)
+ 2H2 + CO2
Aqueous Phase Reforming
H2 O
H2
Hydrodeoxygenation
+ H2 O
Option 2 : HDO (Ex-Situ H2 Production)
Aqueous
Phase Reforming
External
Hydrogen
H2
(Steam Reforming)
H2
Hydrodeoxygenation
+ H2 O
 Decision for APR vs. HDO based on relative cost of
carbohydrate feedstock vs. NG
 HDO is currently preferred- cheap NG, improved yield- no loss
of carbon to CO2
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APR/HDO Reaction Pathways
H2
H2 O
Hydrodeoxygenation
Reactants





Products
Many types of feeds can be used
Examples : Corn syrup, Sucrose, Sugar Alcohols, Biomass Hydrolyzate
Diverse mixture of components produced
Examples : Alcohols, Ketones, Cyclic Ethers, Diols
Intermediates can be tuned to achieve different final product goals
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Condensation Reaction Pathways
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10
DOE CHASE Bio-Oil Award
CHASE = Carbon, Hydrogen, and Separation Efficiencies
Project Title: Fractional Multistage Hydrothermal Liquefaction of Biomass and
Catalytic Conversion into Hydrocarbons (DE-EE0006286)
Objectives: Virent intends to develop an improved multistage process for the hydrothermal liquefaction (HTL) of biomass to
serve as a new front-end, deconstruction process ideally suited to feed Virent’s well-proven catalytic technology, which is
already being scaled up. This process will produce water soluble, partially de-oxygenated intermediates that are ideally
suited for catalytic finishing to fungible distillate hydrocarbons. Virent will utilize two high impact feedstocks; debarked loblolly
pine and corn stover.
Innovation: Novel multistage hydrothermal fractionation and separation process, which improves overall carbon conversion
and can be combined with Virent’s catalytic BioForming technology platform to produce distillate fuels.
“Project Nighthawk”
(Q4 2013 – Q4 2016)
Wood
Corn Stover
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Preconversi
on
Liquefaction
Hydrocarbon
Separations
Diesel
Jet Fuel
Gasoline
11
Virent’s Biomass to Jet Platform
Third Party
Deconstruction
(Neat Sugars)
Sugar Polishing
Conventional
Sugars
(Corn Starch,
Cane Sugar,
Beet Sugar)
Wood to Jet
Sugar to Jet
Hydrolysate
Upgrading
APR/HDO
Condensation/
Hydrotreating
Corn Stover
to Jet
Third Party
Deconstruction
(Crude Sugars)
Biomass
© Virent 2014
Fuels
Naphtha
Jet
Fuel
Diesel
CHASE
Wood to Jet
Corn Stover to Jet
Fractionated
Liquefaction
12
Feedstock
© Virent 2014
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National Challenge
• Replacing the whole barrel
– US spends $1billion/day on oil imports
– Reducing dependence on oil requires
replacing the whole barrel
– Climate change mitigation by replacing
fossil fuels
• Feedstock costs represent up to one-third
current biofuel production costs
Feedstock Cost Challenge
Feedstock Quality Challenge
200
180
160
Feedstock Business
Break point to Achieve
Going Concern
40
20
0
Stover Bales – IBR
60
Straw Bales – Dong Energy
80
Wood Chips – US
100
Grass Pellets – ShowMe Energy
120
Wood Pellets – Rotterdam
$/dry metric ton
140
Feedstock Break
Point to Achieve
$3/gal Target
Temporal changes in %Moisture
Hydrocarbon Pathways
FEEDSTOCKS
Terrestrial
• Ag Residues
• Pulpwood
• Forest
Residues
• Dedicated
Energy Crops
Algal
• Monocultures
• Polycultures
Municipal Solid
Waste
• Construction
& Demolition
Waste
• Yard Waste
• Food Waste
• Paper/
Cardboard
CHARACTERIZATION
PREPROCESSING
CONVERSION
PATHWAYS
CONVERSION
INTERMEDIATES
PRODUCTS
Composition
Drying
Bio. Fermentation
of Sugars
Syngas
Hydrocarbon
Biofuels (gas,
diesel, jet)
Energy Content
Size Reduction
Catalytic Upgrading
of Sugars
Bio-Oil
Moisture
Separations
Ash/Elemental
Species
Particle Size
Ash Reduction
Blending
Fast Pyrolysis
In-Situ Catalytic
Fast Pyrolysis
Ex-Situ Catalytic
Fast Pyrolysis
Syngas Upgrading
Contaminants
Performance
Screening
15 | Bioenergy Technologies Office
Algal Lipid
Upgrading
Whole Algae
Hydro. Liquefaction
Co-products
Feedstock Quality
Challenge
Sugars
Moisture
N=339
• Conversion specs shown (vertical lines)
represent DOE biochem (BC) and
thermochem (TC) pathway quality specs
• Distributions represent variability in
biomass properties relative to spec
• Distributions likely greater if broader
range of resources are considered
• Illustrates challenge associated with
diversity
Ash
Impact of Variability
• Challenge: Understanding
impacts of variability
– Supply chain logistics
– Biomass preprocessing
– Conversion performance
• Our Approach
– Logistics modeling &
sensitivity analysis
– Preprocessing R&D
– Conversion performance
screening
BC* 5%
Sources of Variability
• Challenge: Understanding sources
of variability
– Genetic
• Feedstock type, variety
– Environmental
• Soil type
• Weather
• Agronomic practices
– Annual
– Supply Chain Practices
• Our Approach
– Biomass Feedstock Library:
database consisting of more than
60,000 samples (and growing)
– INL biomass field research
Solutions to Variability
Frequency
• Challenge: Developing ThermoChem Spec: 1%
Example: Ash Content
cost effective solutions
BioChem Spec: 7%
to variability
Corn Stover
Miscanthus
Wheat
• Our Approach: a graded 160
approach
Mechanical Preconversion
140
– Best Management
Formulation/Blending
Practices
120
Chemical Separations
– Preprocessing
100
Technology R&D
80
60
40
Best Management Practices
20
0
1
3
5
7
9
11 13 15 17 19 21 23 25 27 29 31 33 35 37 >39
-20
%Ash
Examples of Ash Reduction to Meet Specifications
• Mechanical separations
– Screening to separate rocks and soil from biomass
– Classification by density or color to separate plant tissue fractions
– Fractional milling to separate size fractions with higher ash
– Triboelectrostatic separation of finely ground biomass to reduce silica
• Chemical separations
– Simple washing to remove soil
– Leaching with water/acid to remove alkali metals/alkaline earth metals
– Limited structural disruption with hot water or acid to remove cell-bound
nitrogen and sulfur
– Dissolution of silica with alkali
• Formulation strategies
– Blending the same feedstock from different sources/harvest methods
– Blending different feedstocks of varying qualities
INL Ash Reduction in Support of Nighthawk
• Nighthawk approach to biomass conversion
– Fractionate biomass into its individual polymers using various
chemistries
– Utilize fraction-specific reaction conditions and catalysts to convert
each fraction to hydrocarbon fuels and chemical intermediates
• Utilize the CPS remove ash and effect structural modifications
– Goal: Make corn stover look like clean stemwood in a feedstock
depot
– Simple washing or mechanical screening to remove soil
– Dissolution of silica and lignin with alkali followed by lignin recovery
– Additional structural disruption with dilute acid to remove cell-bound
nitrogen and sulfur together with alkali metals & alkaline earth metals
• Advantages over direct hydrothermal fraction
– Fouling agents removed before reaching conversion facility
– Less non-convertible material delivered to conversion facility
– Less severe fractionation conditions required at conversion facility
INL Chemical Preconversion System (CPS)
• Designed to effect limited
structural modifications
– Structural ash removal
– Reduced grinding &
pelleting energy usage
• Unique in its applicability to
– large particle sizes
– low bulk densities
– high or low pressure
operation
– high or low temperature
operation
– widely varying chemistries
Conversion Technology
© Virent 2014
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Lignocellulosic Biomass
© Virent 2014
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Depolymerization of Lignocellulosic Biomass
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CHASE Multistage HTL Concept
Biomass
Preconversion
Solvent #2
Solvent #1
Zone 1
Residual
Solids
Solvent #3
Residual
Solids
Zone 2
Zone 3
Residual
Solids
Processing
Virent’s Catalytic BioForming® Process
Drop-in Hydrocarbon fuels (Distillates, Naphtha, Fuel oil)
© Virent 2014
26
CHASE Work Plan
1.
Sand bath: small
scale, rapid testing




2.
Temperature
Pressure
Solvent
Residence Time
Small-scale flowthrough system
 Kinetic Modeling
3.
Prototype unit
 1-5 kg/hr throughput
4.
Existing BioForming
pilot plant to finished
jet fuel
© Virent 2014
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FAA Award
Objective: The funding provided by this proposal has supported
Virent’s efforts to complete specification and fit-for-purpose testing on
HDO-SK through at least CAAFI Fuel Readiness Level (FRL) 6.1 (100
gallons).
Funding: FAA/DOT/Volpe (Contract DTRT57-11-C-10060)
Duration: 2 years, Q4 2011- Q3 2013
“Project Thunderbird”
(Q4 2011 – Q3 2013)
Soluble Sugars
© Virent 2014
APR
Condensation
Finishing
Separations
Jet Fuel
Gasoline
Diesel
28
Virent Demonstrated Yields
0.6
Naphtha
Distillate
Yield (kg product/kg feed)
0.5
Physical Theoretical Conversion Limit
0.4
Theoretical Conversion Limit – Fermentation & APR without External H2
0.3
0.2
0.1
0
Start of
Mar-2010
May-2010
Development
© Virent 2014
July-2010
Nov-2010
Current
29
BioForming® Distillate Platform

Mini-Distillate Pilot Plant
 15 gal/day Liquid Fuel (20x lab)
 100 gal Jet Fuel produced
 Scalable Yield and Product
Quality Proven
 ASTM Certification ongoing
© Virent 2014
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Jet Composition
Broad boiling point range
Cycloparaffins from
condensation +
hydrotreating chemistry
No composition differences
from biomass derived fuels
= feedstock agnostic
Fuel testing important to
gain industry support
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


300
Temperature (°C)
250
200
Corn Syrup
Corn Syrup
Woody Biomass
Corn Stover
Conventional Jet
150
100
50
0
0
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20
40
60
Volume %
80
100
31
Jet Fuel Quality and Testing
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DEFINITIONS & CAUTIONARY NOTE
Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves.
Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are
consistent with the Society of Petroleum Engineers 2P and 2C definitions.
Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing
impact.
Resources plays: our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch
Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are
also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular
company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly
or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence
but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this
presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate
the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company,
after exclusion of all third-party interest.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other
than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are
based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the
potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions.
These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’,
‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could
affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this
presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling
and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the
identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in
developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures
as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and
renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs;
and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are
contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2013 (available at www.shell.com/investor and www.sec.gov ). These factors also should be
considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 21 March, 2014. Neither Royal Dutch Shell nor any of its
subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of
these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no
assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.
We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from
including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
You can also obtain this form from the SEC by calling 1-800-SEC-0330.
Copyright of Shell Global Solutions (US) Inc
CAAFI SOAP-Jet
21 March 2014
3
3
What Makes a Good Jet Fuel?
Typical Jet A-1
Virent Synthetic Kerosene
Mass %
n-paraffin
iso-paraffin
cycloparaffin
= naphthene
= cycloalkane
Copyright of Shell Global Solutions (US) Inc
monoaromatic
dicycloparaffin
= di-naphthene
= di-cycloalkane
diaromatic
= naphthalene
naphthenic mono-aromatic
21 March 2014
34
US Jet Fuel Spec:
Copyright of Shell Global Solutions (US) Inc
~ 25 properties
CAAFI SOAP-Jet
21 March 2014
35
How a New Jet Fuel Gets Approved in ASTM
Copyright of Shell Global Solutions (US) Inc
36
Industry Jet Fuel Qualification Process (ASTM D4054)


Copyright of Shell Global Solutions (US) Inc

CAAFI SOAP-Jet
Current status of Virent
Synthetic Kerosene (SK)
21 March 2014
37
Virent SK: Test Results
Copyright of Shell Global Solutions (US) Inc
CAAFI SOAP-Jet
21 March 2014
38
Virent SK: Fit-For-Purpose Properties
Copyright of Shell Global Solutions (US) Inc
CAAFI SOAP-Jet
21 March 2014
39
Virent SK: Status
 Specification and Fit-For-Purpose Testing Complete
 Report Available Soon
 All Properties within Experience
 Rig Testing at Honeywell – in progress
 Atomizer Cold Spray
 Combustor Rig
 Cold & Altitude Starting
 Seeking opportunities to produce additional volumes for certification
Copyright of Shell Global Solutions (US) Inc
CAAFI SOAP-Jet
21 March 2014
40
Thank You. Questions?
Randy Cortright, PhD, CTO and Founder
Brice Dally, Sr. Process Development Engineer
Kevin Kenney, Director Biomass Feedstock National User Facility
David Thompson, PhD, Biochemical Engineer, Renewable Resources Distinguished Staff Engineer
Cynthia Ginestra, PhD, Aviation Fuels Research Engineer
© Virent 2014

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